The Indian Customs department has issued LG Electronics India a Show Cause Notice dated September 22, 2026, proposing recovery of ₹153.58 crore. The notice alleges that the company excluded royalty payments from the assessable value of certain imported goods, resulting in an underpayment of customs duty. The action follows an investigation by the Directorate of Revenue Intelligence (DRI).
LG Electronics India said it is evaluating the notice and will respond to the authorities within the stipulated timeframe. The final financial impact will be determined after adjudication. No penalties have been imposed at this stage.
The development comes amid increased regulatory scrutiny of electronics imports in India. Other disputes have focused on the tariff classification of high-end television components.